Client Experience

Safeguarding a Daughter’s Inheritance

A couple in their mid-fifties recently sold their company and now have a net worth of approximately $15 million:

  • $6 million net from the sale of their company
  • $2 million in residential property (a main home and a vacation property)
  • $7 million of liquidity (including $1 million in retirement funds)

The couple wants to be sure that their wealth will pass to their daughter who is planning to marry. They are particularly concerned that their daughter be able to retain her inheritance should she ever divorce.

Working with their lawyer and J.P. Morgan, the couple set up a trust to be funded at their deaths that would hold assets passed on to the daughter as the sole beneficiary. Distributions from the daughter’s trust would be made at the trustee’s discretion.

Transferring the assets to a trust helped protect assets from any claims the daughter’s creditors might make. In addition, because she alone is the beneficiary of the trust, these assets should not be commingled with her husband’s assets.

The couple chose J.P. Morgan as trustee to both administer the trust and invest its assets. In this way, they have the comfort of knowing a professional will be there to help their daughter manage and invest her wealth far into the future.

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All case studies are shown for illustrative purposes only and should not be relied upon as advice or interpreted as a recommendation. Results shown are not meant to be representative of actual investment results. Past performance is not necessarily indicative of the likely future performance of an investment.